UK consumer confidence is at its lowest level since the aftermath of last summer’s EU referendum, according to a new survey.
GfK’s Consumer Confidence index decreased five points to -10 in June, the lowest level since June 2016, when the index hit – 12.
Joe Staton, head of Market Dynamics at GfK, said: “This month’s survey covers the period before and after the UK general election and reveals a sharp drop in confidence among consumers across all measures. The Overall Index Score is just two points away from last year’s post-Referendum low of -12.”
The fall this month reflect negative sentiment about our personal financial situation and expectations for the wider economy.
The index measuring changes in personal finances during the last 12 months has decreased by three points this month to -1; this is seven points lower than this time last year.
Meanwhile, the measure for the general economic situation has decreased five points to -25, 12 points lower than June 2016, and expectations for the year ahead have decreased two points to -23; this is nine points lower than June 2016.
“All this concern will worry the UK’s retailers, with this month’s plunge in the Major Purchase Index (down eight points) reflecting our increased caution over non-food spending and our softening appetite for debt,” said Staton.
“Strong consumer spending has propped up the economy since last June but now the twin pressures of higher prices and sluggish wage growth are squeezing household finances and adding to widespread fears of a Brexit-induced economic slowdown.”